Massive Change Coming To Social Security For New Yorkers

There is good news and there is bad news for New Yorkers who receive Social Security benefits. Trump signed his 'Big Beautiful Bill,' which will leave millions of New Yorkers, including children, the disabled, and working families, without Medicaid and SNAP benefits. But there is some good news for seniors who get Social Security.

KEEP READING: Working Families In New York To Lose Medicaid & SNAP Benefits

Tax Relief Is Coming To Social Security

The One Big Beautiful Bill Act will states that 88 percent of Social Security income recipients won't have to pay federal income taxes on their benefits. Social Security Commissioner Frank Bisignano said,

"This is a historic step forward for America's seniors. For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump's promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they've earned."

That's the good news...

KEEP READING: It’s Crazy How Much New York Spends To House Prisoners

There is always a catch. The tax relief is temporary and only for a very short period of time. It will take effect in 2026 and will end after 2028. New Yorkers who are aged 65 or older and have an income of up to $75,000 for an individual or $150,000 for married couples can take a $6,000 tax deduction. Per Forbes, the deduction is not actually tied to Social Security because "senators are not allowed to make changes to Social Security through the reconciliation process, which was used to pass the spending bill and allows budget-focused policies to pass with only a simple majority of votes."

In addition, the tax relief could spell problems for the Social Security program down the line. According to The Motley Fool, the money that funds Social Security comes from three primary sources - payroll taxes (91%), taxes collected on benefits (4%), and interest earned on trust fund assets (5%). Because Social Security is already in a deficit, cutting taxes on benefits could cause future problems.

Get our free mobile app